Differences between the IAS and IFRS

The question of the differences between the IAS and IFRS has arisen on a number of
occasions in accounting circles, and in fact, some would question if there is any
difference at all.
One of the major differences is that the series of standards in the IAS were published by
the International Accounting Standards Committee (IASC) between 1973 and 2001,
whereas, the standards for the IFRS were published by the International Accounting
Standards Board (IASB), starting from 2001.
When the IASB was established in 2001, it was agreed to adopt all IAS standards, and
name future standards as IFRS. One major implication worth noting, is that any
principles within IFRS that may be contradictory, will definitely supersede those of the
IAS. Basically, when contradictory standards are issued, older ones are usually
disregarded.
Examples
To make a difference in the decision process, information must possess predictive
value and/or feedback value. Generally, useful information will possess both qualities. For
example, if net income and its components confirm investor expectations about future cash-
generating ability, then net income has feedback value for investors. This confirmation can also
be useful in predicting future cash-generating ability as expectations are revised.
Example 1:
A company discloses an increase in Earnings Per Share (EPS) from $5 to $6 since the last
reporting period. The information is relevant to investors as it may assist them in confirming
their past predictions regarding the profitability of the company and will also help them in
forecasting future trend in the earnings of the company. (Predictive value)
Relevance is affected by the materiality of information contained in the financial statements
because only material information influences the economic decisions of its users. The investors
when take a corrective action while keeping in mind the dollar one increase in EPS is known as
feedback value. If the disclosure is on time then it has followed timeliness otherwise not.
Example 2:
A default by a customer who owes $1000 to a company having net assets of worth $10 million is
not relevant to the decision making needs of users of the financial statements.
However, if the amount of default is, say, $2 million, the information becomes relevant to the
users as it may affect their view regarding the financial performance and position of the company

The SEC requires its registrants to submit financial statement information not only on an annual
basis, but also quarterly for the first three quarters of each fiscal year.